Table 3 Hong Kong's Balance of Payments Sub-account Components:   Capital and Financial Account

HK$ million   2001 2002 2002 2002 2002 2002 2003 2003 Standard Components Annual Annual 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr Capital and Financial Account(1) -97,359 -191,417 -46,809 -30,363 -57,056 -57,189 -38,356 -6,276    Capital Account -9,155 -15,725 -2,998 -7,586 -1,912 -3,229 -1,948 -2,825       Capital transfers -9,155 -15,725 -2,998 -7,586 -1,912 -3,229 -1,948 -2,825          General government 0 0 0 0 0 0 0 0          Other sectors -9,155 -15,725 -2,998 -7,586 -1,912 -3,229 -1,948 -2,825       Non-produced and non-financial assets ... ... ... ... ... ... ... ...    Financial Account -88,204 -175,692 -43,811 -22,777 -55,144 -53,960 -36,408 -3,451       Financial non-reserve assets (net change) -51,674 -194,233 -39,950 -25,897 -62,844 -65,542 -26,017 -25,186          Direct investment 96,948 -31,007 -10,139 15,254 -32,735 -3,387 3,016 34,843             Direct investment abroad -88,476 -137,993 -40,923 -29,503 -62,429 -5,138 -36,046 17,957                Equity capital -4,850 -79,976 -5,840 -9,149 -54,592 -10,394 -4,488 -4,607                   Claims on affiliated enterprises -4,850 -79,976 -5,840 -9,149 -54,592 -10,394 -4,488 -4,607                   Liabilities to affiliated enterprises ... ... ... ... ... ... ... ...                Reinvested earnings -103,179 -46,651 -28,193 -27,474 1,899 7,117 -23,779 -3,916                Other capital 19,554 -11,366 -6,890 7,121 -9,735 -1,862 -7,780 26,480                   Claims on affiliated enterprises -29,900 938 -5,845 8,721 -8,771 6,832 -8,478 15,491                   Liabilities to affiliated enterprises 49,454 -12,304 -1,045 -1,601 -964 -8,694 698 10,989             Direct investment in HK 185,424 106,986 30,784 44,757 29,694 1,751 39,062 16,886                Equity capital 60,180 24,192 7,817 7,936 4,782 3,657 1,216 1,384                   Claims on direct investors ... ... ... ... ... ... ... ...                   Liabilities to direct investors 60,180 24,192 7,817 7,936 4,782 3,657 1,216 1,384                Reinvested earnings 96,349 145,740 36,674 31,156 47,505 30,405 32,442 24,628                Other capital 28,895 -62,945 -13,707 5,665 -22,593 -32,311 5,405 -9,126                   Claims on direct investors -10,277 -3,043 5,109 861 -4,590 -4,424 -574 -341                   Liabilities to direct investors 39,172 -59,902 -18,816 4,804 -18,003 -27,887 5,979 -8,785          Portfolio investment -322,045 -290,749 7,056 -117,765 -82,478 -97,561 -54,803 -25,874             Assets -312,992 -283,684 -13,435 -126,842 -60,200 -83,208 -59,387 -17,178                Equity securities -176,892 -120,157 -22,373 -41,229 -43,178 -13,376 -32,432 11,447                   Banks 71 -154 -72 -65 -17 ... -125 -286                   Other sectors -176,962 -120,003 -22,301 -41,165 -43,161 -13,376 -32,307 11,733                Debt securities -136,100 -163,527 8,938 -85,612 -17,022 -69,832 -26,955 -28,625                   Bonds and notes -121,260 -171,793 -18,467 -58,032 -28,505 -66,789 -28,772 -29,898                      Banks -119,834 -158,628 -27,286 -65,720 -22,998 -42,624 -25,013 -13,491                      Other sectors -1,425 -13,165 8,819 7,688 -5,507 -24,165 -3,759 -16,406                   Money market instruments -14,840 8,266 27,405 -27,581 11,484 -3,043 1,817 1,272                      Banks -2,746 6,686 24,887 -28,773 13,638 -3,067 7,581 -349                      Other sectors -12,094 1,580 2,518 1,192 -2,155 24 -5,764 1,622             Liabilities -9,054 -7,065 20,491 9,076 -22,279 -14,353 4,584 -8,696                Equity securities -6,673 13,577 20,841 1,228 -10,117 1,626 -232 3,160                   Banks -115 3,873 2,450 474 1,251 -303 -1,037 -1,506                   Other sectors -6,558 9,704 18,390 754 -11,368 1,928 805 4,666                Debt securities -2,380 -20,642 -350 7,848 -12,161 -15,979 4,816 -11,856                   Bonds and notes -7,547 -1,865 -2,324 7,829 -4,186 -3,184 6,818 -9,239                      Banks -2,680 -2,286 -1,661 -397 -98 -130 6,591 -3,020                      Other sectors -4,866 421 -663 8,226 -4,088 -3,054 228 -6,219                   Money market instruments 5,166 -18,776 1,974 19 -7,975 -12,795 -2,002 -2,617                      Banks 4,297 -424 -509 386 -1,065 763 427 -2,493                      Other sectors 869 -18,352 2,484 -367 -6,911 -13,558 -2,429 -125          Financial derivatives 39,640 10,616 12,316 6,054 -5,706 -2,048 12,122 22,044             Assets 140,147 107,530 42,239 23,266 15,343 26,683 62,992 40,460                Banks 131,100 101,682 41,692 22,816 13,051 24,123 59,116 39,901                Other sectors 9,047 5,848 547 451 2,291 2,559 3,877 559             Liabilities -100,507 -96,914 -29,923 -17,212 -21,049 -28,731 -50,871 -18,416                Banks -97,271 -89,455 -29,638 -13,497 -19,270 -27,050 -50,704 -16,641                Other sectors -3,236 -7,459 -285 -3,715 -1,779 -1,681 -167 -1,775          Other investment 133,783 116,906 -49,183 70,560 58,075 37,454 13,649 -56,198             Assets 461,197 324,054 96,784 50,015 126,936 50,318 58,386 -6,519                Trade credits 3,506 -22,427 -5,107 -4,412 -8,588 -4,320 -6,950 -4,055                Loans 211,699 12,426 24,050 -61,368 26,845 22,899 -12,201 26,170                   Banks 220,540 -14,942 22,020 -34,725 4,756 -6,994 -3,901 24,085                   Other sectors -8,841 27,368 2,030 -26,643 22,088 29,892 -8,300 2,085                Currency and deposits 233,167 352,317 102,051 118,633 105,179 26,454 78,206 -26,633                   Banks 256,789 320,413 97,676 89,617 118,941 14,179 80,490 -6,860                   Other sectors -23,622 31,904 4,375 29,015 -13,762 12,275 -2,284 -19,772                Other assets 12,824 -18,262 -24,210 -2,838 3,500 5,286 -669 -2,002                   Banks 1,919 878 676 -3,798 3,374 627 -1,008 -2,200                   Other sectors 10,905 -19,139 -24,885 961 126 4,659 339 198             Liabilities -327,414 -207,147 -145,967 20,545 -68,862 -12,863 -44,738 -49,678                Trade credits -4,853 429 -2,645 736 1,658 680 4,587 -969                Loans -31,256 -109,825 -59,634 9,567 -21,063 -38,695 16,843 -20,350                   Banks -44,949 -43,601 -46,068 928 376 1,162 3,276 -8,510                   Other sectors 13,693 -66,224 -13,566 8,639 -21,439 -39,858 13,567 -11,840                Currency and deposits -289,287 -103,082 -85,964 10,692 -51,120 23,310 -66,905 -26,548                   Banks -289,260 -103,542 -86,236 10,291 -51,763 24,166 -66,477 -26,330                   Other sectors -26 461 272 402 643 -856 -428 -217                Other liabilities -2,018 5,330 2,276 -451 1,663 1,842 737 -1,811                   Banks -252 459 2,139 -711 -366 -603 2,712 1,135                   Other sectors -1,766 4,871 137 259 2,029 2,445 -1,975 -2,946          Reserve assets (net change)(2) -36,530 18,541 -3,861 3,120 7,700 11,582 -10,392 21,735

Notes : (1) In accordance with the Balance of Payments accounting rules, a positive value for the balance figure in the current account represents a surplus whereas a negative value represents a deficit. For the capital and financial account, a positive value indicates a net capital and financial inflow and a negative value indicates a net outflow. As increases in external assets are debit entries and decreases are credit entries, a negative value for net change in reserve assets represents a net increase and a positive value represents a net decrease.         (2) The estimates on net change in reserve assets under the Balance of Payments framework are transaction figures. Effects from valuation changes (including price changes and exchange rate changes) and reclassifications are excluded.         ... Transaction value is relatively insignificant (less than HK$10 million).